U.S. Government Transfers $699K in Ethereum – Arkham

According to Arkham Intelligence, a wallet believed to be controlled by the U.S. government transferred 300 Ether (ETH), valued at approximately $699,000, to a wallet address ending in “d46” on August 5. 

This transfer is similar to a recent transaction made by the U.S. government on July 30 especially from seized assets, as the wallet now shows a balance of zero.

The timing of this transfer also coincides with a volatile period for Ethereum as the cryptocurrency dropped by 10% in the last 24 hours.

Independent analyst Crypto Lion noted that Ethereum’s recent price dip is due to a lack of demand on exchanges, even after the launch of Ethereum exchange-traded funds (ETFs) in the U.S. 

Moreover, an interest rate cut by the Bank of Japan has contributed to a financial market downturn, pushing Ethereum’s value further down. On August 5, Ethereum hit a low of around $2,100, following a massive sell-off from Jump Crypto after liquidating over $377 million worth of Wrapped Lido Staked ETH (wstETH) from July 24. According to a recent report, the firm is also planning to sell $481 million worth of wstETH.

Additionally, CoinShares’ weekly inflows report published on August 5 indicated that digital asset investment vehicles recorded their first capital outflow in four weeks. Ethereum ETFs saw outflows totaling $146 million for the week, bringing the total outflow since the ETF launch to $430 million. The Grayscale Ethereum Trust has also seen significant outflows, with $603 million exiting the fund since the ETFs were introduced.

Arkham Intelligence’s data reveals that the U.S. government currently holds over 203,000 Bitcoin, valued at approximately $10 billion, making it the largest governmental holder of the cryptocurrency. Additionally, the government possesses 50,224 Ether, $121 million in Tether, 40,285 Binance tokens, and over 10 million Circle’s USD Coin.

Also Read: Ethereum New Addresses Plummet to 2024’s Lowest Level